Of particular concern has been the unprecedented unwinding of the Fed’s massive balance sheet, which is a reversal of the central bank’s extraordinary measures taken during the financial crisis. Now, with the Fed expected to raise interest rates by 25 basis points on Wednesday, that alleged reckoning could soon be upon us.

However, Rick Rieder, the chief investment officer of fixed income at BlackRock, who oversees $US1.7 trillion, thinks that any fears around Fed-driven volatility are overblown. In his mind, the central bank is predisposed to keep conditions as calm as possible, and he argues that it simply won’t inject chaos into the market.

“The one thing a central bank is not supposed to be is the instigator of volatility, and they won’t be.Central banks are maniacally focused on not being an instigant to disrupt markets.

As for the changing leadership at the Fed, the Federal Reserve chair tends to act differently than an elected official.They tend to continue the path laid out by the predecessor, while an elected official oftentimes tries to shift gears.

Also, when the Fed tightens it’s different than easing, in the sense that it can be behind the curve. You want to make sure growth is still durable when you’re tightening, which is very different than the easing process, where you want to be fast and ahead of the economy. I think they will be deliberate in what they do from here.“